A wave of acquisitions has seen investors secure significant retail properties across Virginia and Florida. These transactions, involving both individual assets and large portfolios, highlight continued investor confidence in the open-air retail sector, particularly in high-growth Southeast markets. The deals underscore a trend towards acquiring well-located, necessity-based retail centers with strong anchor tenants.
Key Takeaways
- Multiple investors, including private equity firms and real estate investment platforms, have acquired retail properties in Virginia and Florida.
- A significant 10-property portfolio totaling over 1 million square feet traded for $395.5 million.
- Properties acquired often feature strong anchor tenants like Publix, Whole Foods Market, and 7-Eleven, indicating a focus on essential retail.
- Investors are targeting value-add opportunities, seeking to enhance property value through strategic leasing and operational improvements.
Major Portfolio Transaction
In a significant transaction, Bain Capital and 11North Partners, through a joint venture, acquired a 10-property open-air retail portfolio spanning Florida and South Carolina for approximately $395.5 million. This portfolio, totaling over one million square feet, boasts an occupancy rate exceeding 93%. Seven of the centers are anchored by Publix, with other notable tenants including Bank of America, Chipotle, and Starbucks. The properties are strategically located in desirable submarkets such as Fort Lauderdale, Orlando, Tampa, Boca Raton, and Charleston, South Carolina, areas known for strong demographics and population growth.
Individual Property Acquisitions
Beyond the large portfolio, several individual retail properties have also changed hands. Petrakis Properties acquired a 5,400-square-foot retail strip center in Norfolk, Virginia, anchored by a 7-Eleven, for $1.3 million. In Vero Beach, Florida, FMJ Properties LLC purchased a 5,688-square-foot restaurant property triple-net leased to Chili’s for $2.55 million.
Ram Realty Advisors has acquired The Shoppes at Jupiter, a 197,000-square-foot shopping center in Florida, with plans to reposition it as part of its value-add retail strategy. The acquisition includes a lease with Whole Foods Market as the anchor tenant, reinforcing the focus on essential retail in high-demand corridors.
Value-Add Strategy in Connecticut
While the primary focus of these acquisitions is Florida and Virginia, a notable transaction occurred in Connecticut, where Sterling Organization acquired the Bristol Plaza, a 263,000-square-foot grocery-anchored shopping center. Anchored by Stop & Shop and featuring tenants like T.J. Maxx and Burlington, the acquisition was made on behalf of Sterling’s value-add fund. The company intends to enhance the property’s value through strategic leasing and operational improvements, noting available vacancy and potential for reimagining parts of the center.
Investor Sentiment
These acquisitions reflect a robust investor appetite for well-located, necessity-based retail centers, particularly in the rapidly growing Southeast region. The emphasis on strong anchor tenants and value-add potential suggests a strategic approach to capitalizing on demographic shifts and sustained consumer demand in these markets.
Sources
- Local investors acquire retail properties in Virginia and Florida, Long Island Business News.
- 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.
- Bain Capital and 11North Partners Acquire Portfolio of 10 Open-Air Retail Centers Across Florida and South
Carolina, Bain Capital. - Florida real estate company acquires large CT shopping plaza, Hartford Courant.
- Ram Realty buys 197,000sqft mall in Florida from Orion Real Estate | News, IPE Real Assets.